Archives: Terms

Definition of Credit Bureau A credit bureau is an entity that collects and maintains individual credit information and sells it to lenders, creditors, and consumers in the form of a credit report. These agencies play a pivotal role in the credit system by providing a mechanism to help lenders make […]

Definition of Cost-Push Inflation Cost-push inflation occurs when the overall prices of goods and services in an economy rise due to increasing costs of production. Factors such as higher wages, increased taxes, and rising costs for raw materials or imports are common culprits. Unlike demand-pull inflation, which is caused by […]

Definition of Cost-of-Production Theory of Value The Cost-of-Production Theory of Value is an economic concept which posits that the value of a good or service is determined by the total amount of labor, materials, and overhead costs incurred in its production. According to this theory, the price of an item […]

Definition of Cournot Competition Cournot competition, named after the French economist Antoine Augustin Cournot, is a model of industrial organization in which firms compete on the quantity of output they will produce, which they decide upon independently and at the same time. This contrasts with other models like Bertrand competition, […]

Definition of Cost the Limit of Price The principle of “cost the limit of price” is an economic theory suggesting that the price of any product or service should reflect the actual cost of its production and distribution, and no more. This concept opposes the idea of charging a price […]

Definition of Cost Overrun Cost overrun refers to a situation where the actual cost of a project exceeds its original budget or estimate. It’s an unexpected increase in costs that were not accounted for in the planning stages, leading to additional expenses that can impact the financial stability and profitability […]

Definition of Cost Curve A cost curve is a graphical representation that shows how the cost of producing goods changes with changes in the quantity of output produced. It essentially reflects the relationship between costs (on the vertical axis) and quantity (on the horizontal axis). There are several types of […]

Definition of Corporation A corporation is a legal entity that is separate and distinct from its owners. Corporations are allowed to own assets, incur liabilities, sue and be sued, and enter into contracts under their own names. This legal structure is designed to make it easier for the entity to […]

Definition of Corporate Tax Corporate tax, also known as corporate income tax, is a levy placed on the profit of a corporation. The tax is imposed at the national level and, in some cases, at the state or local levels as well. The rate at which a corporation is taxed […]

Definition of Coordination Good A coordination good is a type of good that increases in value to a user as the number of users increases. This phenomenon is often associated with the concept of network effects or positive externalities, where the utility or desirability of a product or service grows […]